With the onset of the joyous season, markets and e-commerce stores are offering a wide range of discounts.
To manage their varied shopping needs and big expenses, consumers prefer to count on collateral-free financing. While the convenience of personal loans comes at a cost, customers can take an informed decision to borrow by noting all the associated charges and partnering with a lender that ensures transparency and has no hidden charges.
Bajaj Finance Limited, the lending and investing arm of Bajaj Finserv, offers personal loans of up to Rs 25 lakh, disbursed within 24 hours of approval. This provides convenient solutions for big-ticket purchases that customers want to make during the festive season.
Main charges associated with a personal loan
* Interest rates: Interest comprises the major cost of taking the loan and is repaid along with principal components through EMIs. Customers must take the time to find out the loan's effective interest charges as the numbers differ depending on whether the lender offers - flat rate or reducing rate loans. You can avail a Bajaj Finserv Personal Loan at competitive interest rates. With the flexi facility, you can opt to pay interest-only EMIs for the initial part of the tenor.
* Processing fees: These are the charges associated with processing loan applications. They are either to be paid upfront or along with the EMIs. With Bajaj Finserv, processing fees range up to 4.13 per cent of the loan amount, inclusive of taxes.
* Prepayment charges: This is the amount customers pay for the convenience to repay principal components before the due date. For part-prepayments, Bajaj Finserv charges 2 per cent + tax on the amount paid. For foreclosures, the charges are 4 per cent + tax on the principal outstanding.
Ancillary fees related to the loan
* Bounce charges: Customers incur a fee ranging between Rs 600 and Rs 1,200 inclusive of taxes when their EMI cheque bounces.
* Penal interest: This cost is incurred for paying EMIs after the deadline. Bajaj Finserv charges the greater of 2 per cent of the EMI amount per month + taxes and Rs 200 per month.
* Secure fee: A one-time fee of Rs 4,499 charged to facilitate loan applications made online.
* Document or statement charges: Customers can get physical copies of statements/ letters, or certificates at Bajaj Finserv branches at a charge of Rs. 50, inclusive of taxes, or for free, online.
Costs for optional, value-added features
Fees also vary depending on the type of loan availed. For instance, customers can opt for the flexi loan facility to borrow from their sanction in parts, on the go, and pay interest only on the amount withdrawn by servicing the annual/maintenance charges involved with the offering.
Take a loan responsibly, after understanding charges
This Diwali, customers needn't shy away from instant, personal loan financing. As long as the charges are factored in and repayment is well-planned using the EMI calculator, customers can rely on a personal loan to make the most of the festive season's deals and celebratory spirit.
After scanning through the fine print and taking note of the associated charges, customers can check their pre-approved loan offer from Bajaj Finserv to gain access to collateral-free financing in a shorter time. On sharing basic personal information, customers get instant funds through a customised deal, preparing the way for successful big-ticket spending this festive season.
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